A SECOND SUBSTITUTE ORDINANCE AMENDING CHAPTER 6.54 OF THE METROPOLITAN CODE OF LAWS
RELATIVE TO LICENSING AND REGULATION OF ADULT ENTERTAINMENT.

NOW, THERFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE
AND DAVIDSON COUNTY:

SECTION 1.Section 6.54.010 Definitions, is amended by adding the following definitions
and re-lettering the definitions so that they are in alphabetical order:

"Crimes of a sexual nature" means the crimes of rape, aggravated rape,
aggravated sexual assault, statutory rape, rape of a child, sexual exploitation of a
minor, indecent exposure, prostitution, patronizing prostitution, promoting prostitution,
obscenity, or crimes committed in a jurisdiction other than Tennessee which, if committed
in this state, would have constituted the crimes listed above. In the event that a felony
from a jurisdiction other than Tennessee is not a named felony in this state, the elements
of the offense shall be used to determine what classification the offense is given.

"Current entertainer" means an entertainer performing sexually oriented
entertainment within the metropolitan area as of March 1, 1998.

"Existing sexually oriented business," means a sexually oriented business
that is operating within the metropolitan area as of March 1, 1998.

"New sexually oriented business" means a sexually oriented business not in
operation as of March 1, 1998.

"New entertainer" means an entertainer not performing sexually oriented
entertainment within the metropolitan area as of March 1, 1998.

SECTION 2.Section 6.54.020(G)(3) is amended by deleting the last sentence.

SECTION 3.Section 6.54.020(G)(6) is amended by deleting the subsection in its entirety
and a new subsection (6) is enacted as follows:

(6) The board will arrange for a court reporter to be present at any hearing after an
initial adverse administrative decision.

SECTION 4.Section 6.54.030 (A) is amended by deleting the subsection in its entirety
and a new subsection (A) is enacted as follows:

(A) Except as provided in subsection F of this section, from and after March 1, 1998,
no sexually oriented business shall be operated or maintained within the metropolitan area
without first obtaining a license to operate issued by the board.

SECTION 5.Section 6.54.030(F)(1) and (2) is amended by deleting the subsections in
their entirety and a new subsection (F) is enacted as follows:

(F) All existing sexually oriented businesses, as defined in 6.54.010, must submit an
application for a license by June 30, 1998, or cease operations. All existing sexually
oriented businesses which apply for a license by June 30, 1998, may continue to operate
the sexually oriented business described in the application even if the board votes to
deny the application where such denial is appealed to a court in accordance with 6.54.040
(E)(3). All new sexually oriented businesses, as defined in 6.54.010, may submit an
application at any time but may not operate until a license is granted except as permitted
in 6.54.040(E)(4).

SECTION 6.Section 6.54.040(A)(1) is amended by deleting the word "promptly"
after "A copy of the application shall be distributed" and before the words
"by the board" and substituting the words "the next business day".

SECTION 7.Section 6.54.040(A)(5)(d) is deleted in its entirety and the remaining
subsections are re-lettered as appropriate.

SECTION 8.Newly re-lettered subsection 6.54.040(A)(5)(d) is amended by adding the word
"/permit" after every appearance of the word "license".

SECTION 9.Newly re-lettered subsection 6.54.040(A)(5)(e) is amended by deleting the
subsection in its entirety and a new subsection (e) is enacted as follows:

(e) All convictions or pleas of nolo contendere to a crime of a sexual nature, as
defined in subsection 6.54.010, or any crime involving moral turpitude punishable as a
misdemeanor violation that has occurred within the past two years. All convictions or
pleas of nolo contendere to a crime of a sexual nature, as defined in Subsection 6.54.010,
or any crime involving moral turpitude punishable as a felony that has occurred within the
past five years.

SECTION 10.Subsection 6.54.040(B) is amended by adding the words "and
Investigations" to the title of that subsection.

SECTION 11.Subsection 6.54.040(B)(1) is amended by deleting the words "police
department" after the word "The" in the first sentence and before the words
"Codes department, fire department and health department" and by adding the
following at the end of that subsection:

The police department shall investigate the applicant's criminal history by entering
the information included on the application into the appropriate computer database or
otherwise obtaining the described information. The results of both the inspections and the
investigation shall be filed in writing (this may be the printout given by a computer
database) with the board no later than twenty days after the date the application was
filed with the board. Any inspection or investigation information not filed with the board
in the time period specified shall not prevent the applicant from receiving the license
and shall be treated by the board as if the report revealed no code violations and/or no
applicable criminal history.

SECTION 12. Subsection 6.54.040(B)(3) is amended by adding the words "and
investigation" after the words "complete their respective inspections" and
before the words "and shall communicate the results" and by deleting the word
"thirty" in the first sentence and substituting the word "twenty".

SECTION 13.Subsection 6.54.040(C) is amended by adding the words "and
Investigation" to the title of that subsection after the word "Inspection".

SECTION 14.Subsection 6.54.040(C)(1) is amended by deleting the subsection in its
entirety and a new subsection (1) is enacted as follows:

(1) Within fifteen days of receiving the results of the investigation conducted by the
police department and the inspections by the codes department, fire department and health
department the board will meet and determine if the applicant is in compliance with the
applicable statutes, ordinances and regulations. If the board determines that the
applicant is in compliance with the applicable statutes, ordinances and regulations,
including but not limited to the zoning code, and the applicant has not committed a crime
of a sexual nature, as defined in 6.54.010, or any crimes involving moral turpitude, is at
least eighteen years of age, and has not given any false or misleading information on the
application or omitted any material facts from the application then the board shall grant
the license. If the board fails to meet within the time period specified, or fails to have
a quorum at the meeting, then the license shall be deemed approved and notice sent to the
applicant by United States Mail to the address listed on the application.

SECTION 15.Subsection 6.54.040(C)(2) is amended by deleting the subsection in its
entirety and a new subsection (2) is enacted as follows:

(2) In the event the board denied the application in accordance with 6.54.050(B)(2),
such denial and the reason for the denial shall be mailed to the applicant the next
business day after the board meeting reviewing the results of the investigation and
inspections.

SECTION 16.Subsection 6.54.040(C)(3) is amended by deleting the words "and the
investigation information" after the words "using the application" and
before the words "that the applicant has violated the provisions of" in the
first sentence and substituting in lieu thereof the words "and the inspection
reports".

SECTION 17. Subsection 6.54.040(C) is amended by adding a new subsection 4, renumbering
the current subsection 4 as subsection 5 and, renumbering the remaining subsections as
appropriate:

4. Any investigation reports or inspection reports not filed with the board in the time
period specified in this subsection shall not prevent the applicant from receiving his/her
license and shall be treated by the board as if that department approved the application.

SECTION 18. Newly re-numbered subsection 6.54.040(C)(5) is amended by deleting the
words "until the applicant is in compliance" at the end of the last sentence and
substituting in lieu thereof "in accordance with 6.54.050(A) and (B)".

SECTION 19.Newly re-numbered subsection 6.54.040(C)(6) is amended by adding the words
"in accordance with 6.54.050(B)(3)" at the end of the last sentence.

SECTION 20.Newly re-numbered subsection 6.54.040(C)(7) is amended by deleting the
subsection in its entirety and a new subsection (7) is enacted as follows:

(7) Within fifteen days of receiving the results of the investigation conducted by the
police department, and inspection reports from the codes department, fire department and
health department, if the board shall determine that the applicant is not in compliance
with the applicable statutes, ordinances and regulations, the applicant shall be notified
in writing, the next business day, that the license is denied for failing to comply with
applicable statutes, ordinances and regulations. This notice shall specify the violation.
If the applicant can come into compliance as described in 6.54.040(D), the denial shall
not take effect. The notice shall also specify that the applicant may request a hearing
within five days, cure the violation within fifteen days and request re-inspection or
request an extension of time.

SECTION 21. Newly re-numbered subsection 6.54.040(C)(8) is amended by deleting the
subsection in its entirety and a new subsection (8) is enacted as follows:

(8) The board has the discretion to hold any application for further investigation if:
(a) the initial investigation requires investigation into out-of- state records; or (b)
verification of out-of-state employment relating to a sexually oriented business or a
sexually oriented business license/permit or similar business license/permit is needed.
Such additional investigation shall not exceed an additional ten days from the end of the
initial fifteen days specified in subsection 6.54.040 (C)(1), unless otherwise agreed to
by the applicant.

SECTION 22. Newly re-numbered subsection 6.54.040(C)(9) is amended by adding the words
"the next business day" after the words "advise the applicant in
writing".

SECTION 23. Newly re-numbered subsection 6.54.040(C)(10) is amended by deleting the
words "subsection 6.54.040(C)(7) of this section" and substituting in lieu
thereof "6.54.040(C)(8)" at the end of the last sentence.

SECTION 25.Subsection 6.54.040(D)(1) is amended by deleting the words "subsection
(C)(6)" in the first sentence and substituting in lieu thereof "6.54.040(C)(5)
or (C)(7)".

SECTION 26.Subsection 6.54.040(D)(1)(a) is amended by deleting the subsection in its
entirety and a new subsection (1)(a) is enacted as follows:

(a) The applicant has five days from the mailing of the denial described in
6.54.040(C)(5) or (C)(7) to cure the violation and notify the board or to request an
extension pursuant to 6.54.040(D)(2). The applicant has the responsibility to contact the
board.

SECTION 27. Subsection 6.54.040(D)(1)(b) is amended by deleting the subsection in its
entirety and a new subsection (1)(b) is enacted as follows:

(b) Once contacted, the board shall notify the appropriate inspector the next business
day that the applicant believes he/she has come into compliance.

SECTION 28.Subsection 6.54.404(D)(1)(c) is amended by deleting the word "ten"
after the words "The inspector has" and before the words "days from the
date" and substituting the word "five" and by adding the words "using
the same language required in 6.54.040(B)(3)" at the end of the last sentence.

SECTION 29.Subsection 6.54.404(D)(1)(d) is amended by adding an additional sentence at
the end of the paragraph:

The next meeting shall be held no later than fifteen days after the inspection report
is filed with the board. Any inspections not filed with the board in the time period
specified in this section will be treated as described in 6.54.040(C)(4).

SECTION 30. Subsection 6.54.404(D)(1)(e) is amended by deleting the word
"owner" in the first sentence and substituting the word "applicant"
and by deleting the words "subsection (C)(6) of this section" at the end of the
last sentence and substituting the words "6.54.040(C)(5) or (C)(7)".

SECTION 31. Subsection 6.54.040(D)(2) is amended by deleting "(C)(6) and (D)(3) of
this section" at the end of the last sentence and substituting the words
"6.54.040(C)(5) or (C)(7) or (D)(3)".

SECTION 32. Subsection 6.54.404(D)(2)(a) is amended by deleting the subsection in its
entirety and a new subsection (2)(a) is enacted as follows:

(a) The request for an extension must be made in writing within five days from the
denial described in 6.54.040(C)(5) or (C)(7).

SECTION 33.Subsection 6.54.404(D)(2)(b) is amended by adding an additional sentence at
the end of the paragraph:

The next meeting shall be held no later than fifteen days after the request for the
extension is received by the board.

SECTION 34.Subsection 6.54.040(D)(2)(d) is amended by deleting the subsection in its
entirety and a new subsection (2)(d) is enacted as follows:

(d) An extension shall only be granted when the inspector from the Codes Department
agrees that an extension is necessary and the Codes inspector, the Health inspector, and
the Fire Marshall agree that an extension will not endanger the health or safety of the
community and the board decides that the applicant has demonstrated a good faith effort to
make the necessary repairs or cure the violation(s) in a timely manner.

SECTION 35.Subsection 6.54.040(D)(3) is amended by deleting the subsection in its
entirety and a new subsection (3) is enacted as follows:

(3) If the applicant fails to follow the procedure set out in 6.54.040(D) then the
application is denied and the applicant must reapply to obtain a license. Following the
procedure set out in subsections (D)(1) or (D)(2) of this section requires no additional
fees. Once the deadlines to cure the violation or ask for an extension of time have
passed, the denial described in 6.54.040(C)(5) and (C)(7) shall be treated as a denial of
the application.

SECTION 36. Subsection 6.54.040(E)(1) is amended by deleting the subsection in its
entirety and a new subsection (E)(1) is enacted as follows:

(1) When an application is denied, the applicant has the right to request a hearing
within five days of the board's decision.

The request shall be in writing and filed with the board within five days of the
board's decision.

b. The board shall hear all the evidence pertaining to the denial of the application at
the next regular meeting. The next meeting shall be held no later than fifteen days after
the request described above is mailed.

c. At the hearing, the applicant may present evidence as to why his/her application
should not be denied. If the applicant fails to appear at the hearing before the board
he/she will have waived the right to present evidence to the board. This has no effect,
whatsoever, on the applicant's right to appeal any denial to the circuit or chancery
courts of Davidson County.

The board shall affirm or reject the denial of the application at the hearing and in
writing stating the reasoning for the board's decision.

e. The denial of the application shall be mailed by U.S. mail the next business day to
the address of the applicant as listed on the application.

SECTION 37. Subsection 6.54.040(E)(2) is amended by deleting the subsection in its
entirety and a new subsection (2) is enacted as follows:

(2) Any denial of an application for a license may be immediately appealed to the
circuit or chancery courts of Davidson County. The metropolitan department of law may
institute proceedings for a declaratory judgment. If the applicant chooses to appeal by
filing a petition for a writ of certiorari, then the metropolitan government shall file
the record of all proceedings with the court within ten days from the date the
metropolitan government was served with a petition for a writ of certiorari.

SECTION 38. Subsection 6.54.040(E) is amended by adding a new subsection

numbered (3) as follows:

(3) For an existing sexually oriented business, as defined in 6.54.010, any adverse
administrative decision that is appealed to any court shall not take effect until that
decision has been upheld by the court after adjudication on the merits. If the court fails
to rule within forty (40) days of the filing of an appeal, a license shall issue. When the
court makes a determination after adjudication on the merits that upholds the
administrative denial of the license then that license shall be revoked in accordance with
6.54.150(A)(10). Adverse administrative decisions of the board, which are not appealed
shall not take effect for sixty (60) days from the date of the decision to allow the
affected party time to seek judicial review.

SECTION 39. Subsection 6.54.040(E) is amended by adding a new subsection numbered (4)
as follows:

(4) For a new sexually oriented business, as defined in 6.54.010, any adverse
administrative decision shall take effect the day the decision is issued by the board. If
the adverse administrative decision is appealed to a court, and if the court fails to rule
within forty (40) days of the filing of an appeal, a license shall issue. When the court
makes a determination after adjudication on the merits that upholds the administrative
denial of the license then that license shall be revoked in accordance with
6.54.150(A)(10).

SECTION 40.Subsection 6.54.050(B)(2) and (B)(2)(a) are amended by deleting the
subsections in their entirety and a new subsection (2) and (2)(a) is enacted as follows:

(2) No individual applicant, no officer, director or stockholder required to be named
under Section 6.54.040(A)(5)(i) and no partners required to be named under Section
6.54.040(A)(5)(j) convicted of a crime of a sexual nature, as defined in 6.54.010, or any
crime involving moral turpitude in any jurisdiction shall be eligible to receive a license
for the time period described below.

If the conviction was for a misdemeanor violation, then the applicant shall be
ineligible to receive a permit for two years from the date of the conviction.

SECTION 41.Subsection 6.54.050(B)(2)(b) and 6.54.050(B)(2)(c)is amended by deleting
everything after the words "the date of the conviction".

SECTION 42.Subsection 6.54.050(B)(3)(a) is amended by deleting the subsection in its
entirety and a new subsection (3)(a) is enacted as follows:

(a) If the applicant gave any false or misleading information or omitted any material
facts, then the applicant shall be ineligible to receive a license for one year from the
date of the application which contained the misleading statements or omissions unless the
omission or misleading statement referred to the age of the applicant or to a crime of a
sexual nature, as defined in 6.54.010, or any crime involving moral turpitude.

SECTION 43.Subsection 6.54.050(B)(3)(c) is amended by deleting the subsection in its
entirety and a new subsection (3)(c) is enacted as follows:

(c) If the misleading statements or omissions referred to a crime of a sexual nature,
as defined in 6.54.010, or any crime involving moral turpitude, then the applicant shall
not be eligible to receive a license until the time period described in 6.54.050(B)(2)(a)
through (c) has expired or until one year has passed from the date of the application
which contained the misleading statements or omissions, whichever is longer.

SECTION 44.Subsection 6.54.050(B)(4) is amended by deleting the words "this
chapter or violated" after the words "found to have previously violated"
and before the words "the metropolitan zoning code applicable to sexually oriented
businesses".

SECTION 45.Subsection 6.54.050(B) is amended by adding a new subsection (5) to read as
follows:

5.If the applicant plans to have or has booths, cubicles or stalls for the purpose of
viewing sexually oriented motion pictures, sexually oriented movies, sexually oriented
films, sexually oriented videos or sexually oriented live entertainment, then the booths,
cubicles, or stalls must comply with the requirements set out in 6.54.050(A).

SECTION 46. Subsection 6.54.060(A) is amended by deleting the subsection in its
entirety and a new subsection (A) is enacted as follows:

(A) Except as provided in subsection (B) of this section, from and after March 1, 1998,
no person shall be an entertainer in a sexually oriented business within the metropolitan
area without first obtaining a permit issued by the board.

SECTION 47. Subsection 6.54.060(B) is amended by deleting the subsection in its
entirety and a new subsection (B) is enacted as follows:

(B) All current entertainers, as defined in Section 6.54.010, wishing to continue to
perform sexually oriented entertainment must submit an application for a permit by April
15, 1998. All current entertainers, who apply for a permit by April 15, 1998, may continue
to perform sexually oriented entertainment even if the board votes to deny the application
where such denial is appealed to a court in accordance with 6.54.070(D)(3). All new
entertainers, as defined in Section 6.54.010, may submit an application at any time but
may not perform sexually oriented entertainment until a permit is granted except as
permitted in 6.54.070(D)(4).

SECTION 48. Subsection 6.54.070(A)(1) is amended by deleting the subsection in its
entirety and a new subsection (1) is enacted as follows:

(1) Any person desiring to secure a permit shall make application to the board. The
applicant shall file the original application with three copies. The original application
shall be dated by the board and held in the files of the board. A copy of the application
shall be distributed the next business day by the board to the Metropolitan Nashville
Police Department and the applicant.

SECTION 49.Subsection 6.54.070(A)(2) is renumbered as 6.54.070(A)(4) and new
subsections (2) and (3) are added as follows:

Application forms shall be available at the office of the board.

The application form shall include all information indicated in subdivisions (4)(a)
through (4)(h) of this subsection.

SECTION 51. Subsection 6.54.070(A)(4)(b) is amended by deleting the word
"Written" at the beginning of that subsection.

SECTION 52. Subsection 6.54.070(A)(4) is amended by deleting subsection (e) in its
entirety.

SECTION 53. Subsection 6.54.070(A)(2) is amended by re-lettering subsection (f) as (e)
and substituting the following new subsection (e):

(e) Whether the applicant previously operated in this or any other county, city or
state under a sexually oriented business license/permit or similar business
license/permit. For whom the applicant was employed or associated at the time. Whether the
applicant has ever had such a license/permit revoked or suspended, the reason therefor and
the business entity or trade name for whom the applicant was employed or associated at the
time of such suspension or revocation;

SECTION 54. Newly re-numbered subsection 6.54.070(A)(4) is amended by re-lettering
subsection (g) as (f) and re-lettering the remaining subsections as appropriate and by
substituting the following new subsection (f):

All convictions or pleas of nolo contendere to a crime of a sexual nature, as defined
in Section 6.54.010, or any crime involving moral turpitude punishable as a misdemeanor
violation that has occurred within the past two years. All convictions or pleas of nolo
contendere to a crime of a sexual nature, as defined in Section 6.54.010, or any crime
involving moral turpitude punishable as a felony that has occurred within the past five
years.

SECTION 55.Newly re-numbered subsection 6.54.070(B) is amended by deleting subsection
(B) in its entirety and substituting the following new subsection (B):

(B) The police department shall investigate the applicant's criminal history by
entering the information included on the application into the appropriate computer
database or otherwise obtaining the described information. The results of the
investigation shall be filed in writing (this may be a printout given by a computer
database) with the board no later than twenty days after the date the application was
filed with the board. Any investigation information not filed with the board in the time
period specified shall not prevent the applicant from receiving his/her permit and shall
be treated by the board as if the report revealed no applicable criminal history.

SECTION 56.Newly re-lettered subsection 6.54.070(C) is amended by deleting it in its
entirety and substituting the following new subsection (C):

(C) Board Action on the Investigation Results.

1. Within fifteen days of receiving the results of the investigation conducted by the
police department the board will meet and determine if the applicant has not committed a
crime of a sexual nature, as defined in 6.54.010, or any crime involving moral turpitude,
is at least eighteen years of age, and has not given any false or misleading information
on the application or omitted any material facts from the application then the board shall
grant the permit. If the board fails to meet within the time period specified, or fails to
have a quorum at the meeting, then the permit shall be deemed approved and sent to the
applicant by United States Mail to the address listed on the application.

2. In the event the board denied the application in accordance with 6.54.080, such
denial and the reason for the denial shall be mailed to the applicant the next business
day after the board meeting reviewing the results of the investigation.

3. Any investigation reports not filed with the board in the time period specified in
this section shall not prevent the applicant from receiving his/her permit and shall be
treated by the board as if that department approved the application.

4. If in the course of the investigation it is discovered any false or misleading
statements or information was given on the application, or material facts were omitted
from the application, the board shall deny the application in accordance with 6.54.080.

5. The board has the discretion to hold any application for further investigation if:
(a) the initial investigation requires investigation into out-of- state records; or (b)
verification of out-of-state employment relating to a sexually oriented business or a
sexually oriented business license/permit or similar business license/permit is needed.
Such additional investigation shall not exceed an additional ten days from the end of the
initial fifteen days specified in section 6.54.070(D)(1), unless otherwise agreed to by
the applicant.

6. Whenever an application is denied or held for further investigation, the board shall
advise the applicant in writing the next business day of the reasons for such action. Upon
conclusion of the additional investigation, the board shall advise the applicant in
writing the next business day whether the application is granted or denied.

7. Failure or refusal of the applicant to give any information relevant to the
investigation of the application, or his or her refusal or failure to appear at any
reasonable time and place for examination under oath regarding such application or his or
her refusal to submit to or cooperate with any investigation required by this chapter,
shall constitute an admission by the applicant that he/she is ineligible for such permit
and shall be grounds for denial thereof by the board. This in no way requires the
applicant to agree to additional time extensions beyond that allowed in 6.54.070(C)(5).

Subsection 6.54.070(C) is further amended by deleting subsection (8) and (9).

SECTION 57. Subsection 6.54.070 is amended by deleting re-numbered subsection (D) and
substituting a new subsection "D" entitled "Denial of the Permit
Application".

SECTION 58.Newly re-numbered subsection 6.54.070(D)(1) is amended by deleting it in its
entirety and substituting the following new subsection (D)(1):

(1) When an application is denied, the applicant has the right to request a hearing
within five days of the board's decision.

The request shall be in writing and filed with the board within five days of the
board's decision.

b. The board shall hear all the evidence pertaining to the denial of the application at
the next regular meeting. The next meeting shall be held no later than fifteen days after
the request described above is mailed.

c. At the hearing, the applicant may present evidence as to why his/her application
should not be denied. If the applicant fails to appear at the hearing before the board
he/she will have waived the right to present evidence to the board. This has no effect,
whatsoever, on the applicant's right to appeal any denial to the circuit or chancery
courts of Davidson County.

d. The board shall affirm or reject the denial of the application at the hearing and in
writing stating the reasoning for the board's decision.

e. The denial of the application shall be mailed by U.S. mail the next business day to
the address of the applicant as listed on the application.

(2) Any denial of the application for a permit may be immediately appealed to the
circuit or chancery courts of Davidson County. The metropolitan department of law may also
initiate proceedings for a declaratory judgment. If the applicant chooses to appeal by
filing a petition for a writ of certiorari, then the metropolitan government shall file
the record of all proceedings with the court within ten days from the date the
metropolitan government was served with a petition for a writ of certiorari.

(3) For any current entertainer, as defined in 6.54.010, any adverse administrative
decision that is appealed to any court shall not take effect until that decision has been
upheld by the court after adjudication on the merits. If the court fails to rule within
forty (40) days of the filing of an appeal, a permit shall issue. When the court makes a
determination after adjudication on the merits that upholds the administrative denial of
the permit then that permit shall be revoked in accordance with 6.54.150(A)(10). Adverse
decisions of the board, which are not appealed shall not take effect for sixty (60) days
from the date of the decision to allow the affected party time to seek judicial review.

(4) For a new entertainer, as defined in 6.54.010, any adverse administrative decision
shall take effect the day the decision is issued by the board. If the adverse
administrative decision is appealed to a court, and if the court fails to rule within
forty (40) days of the filing of an appeal, a permit shall issue. When the court makes a
determination after adjudication on the merits that upholds the administrative denial of
the permit then that permit shall be revoked in accordance with 6.54.150(A)(10).

SECTION 63.A new section is created numbered 6.54.080 and entitled "Standards for
Issuance of a Permit" and all following sections are re-numbered accordingly. The new
section will read as follows:

6.54.080 Standards for Issuance of a Permit.

A. Applicant. To receive a permit as an entertainer, an applicant must meet the
following standards:

The applicant shall be at least eighteen years of age.

No applicant convicted of a crime of a sexual nature, as defined in 6.54.010, or any
crime involving moral turpitude in any jurisdiction shall be eligible to receive a permit
for the time period described below.

a. If the conviction was for a misdemeanor violation, then the applicant shall be
ineligible to receive a permit for two years from the date of the conviction.

b. If the conviction or plea was for a felony violation, then the applicant shall be
ineligible to receive a permit for five years from the date of the conviction.

c. The time is computed from the date of the application to the date of the conviction.

3. The applicant shall not have given any false or misleading information on the
application, or omitted any material facts from the application.

a. If the applicant gave any false or misleading information or omitted any material
facts, then the applicant shall be ineligible to receive a permit for one year from the
date of the application which contained the misleading statements or omissions unless the
omission or misleading statement referred to the age of the applicant or to a crime of a
sexual nature, as defined in 6.54.010, or any crime involving moral turpitude.

b. If the misleading statements or omissions referred to the age of the applicant, then
the applicant shall not be eligible to receive a permit until he/she is eighteen or until
one year has passed from the date of the application which contained the misleading
statements or omissions, whichever is longer.

c. If the misleading statements or omissions referred to a crime of a sexual nature, as
defined in 6.54.010, or any crime involving moral turpitude, then the applicant shall not
be eligible to receive a permit until the time period described in 6.54.080(A)(2)(a)
through (c) of this section has expired or until one year has passed from the date of the
application which contained the misleading statements or omissions, whichever is longer.

SECTION 64.Newly re-numbered subsection 6.54.110(A) is amended by deleting the words
"is allowed in" after the words "renewed before operation" and before
the words "the following year".

SECTION 65.Newly re-numbered subsection 6.54.110(B) is amended by deleting the words
"six copies" and substituting the words "plus the number of copies listed
in subsection 6.54.040(A) or 6.54.070(A)".

SECTION 66.Newly re-numbered subsection 6.54.110(K) is amended by deleting the
following words "included in Sections 6.54.040, 6.54.050, 6.54.070 and 6.54.140
(causes for revoking a license/permit)" at the end of the first sentence.

SECTION 67. Newly re-numbered subsection 6.54.110(L)(1) and (2) are amended by deleting
these subsections in their entirety and substituting in a new (L) as follows:

L. When an application for renewal is denied, the applicant has the right to request a
hearing within five days of the board's decision.

The request shall be in writing and filed with the board within five days of the
board's decision.

2. The board shall hear all the evidence pertaining to the denial of the renewal
application at the next regular meeting. The next meeting shall be held no later than
fifteen days after the request described above is mailed.

3. At the hearing, the applicant may present evidence as to why his/her renewal
application should not be denied. If the applicant fails to appear at the hearing before
the board he/she will have waived the right to present evidence to the board. This has no
effect, whatsoever, on the applicant's right to appeal any denial to the circuit or
chancery courts of Davidson County.

4. The board shall affirm or reject the denial of the renewal application at the
hearing and in writing stating the reasoning for the board's decision.

5. The denial of the renewal application shall be mailed by U.S. mail the next business
day to the address of the applicant as listed on the application.

6. Any adverse administrative decision regarding the renewal of a license/permit that
is appealed to any court shall not take effect until that administrative decision has been
upheld by the court after adjudication on the merits. If a court fails to rule within
forty (40) days of the filing of an appeal, a new license/permit shall issue. When the
court makes a determination after adjudication on the merits that upholds the
administrative denial of the renewal for a license/permit then that license/permit shall
be revoked in accordance with 6.54.150(A)(10). Adverse decisions of the board which are
not appealed shall not take effect for sixty (60) days from the date of the decision to
allow the affected party time to seek judicial review.

SECTION 68.Newly re-numbered subsection 6.54.110(M) is amended by deleting the
subsection in its entirety and substituting the following new subsection (M):

(M) The denial of any renewal for a license/permit may be appealed to the circuit or
chancery courts of Davidson County by the applicant. The metropolitan department of law
may initiate proceedings for a declaratory judgment in the circuit or chancery court for
Davidson County. If the applicant or the permittee/licensee chooses to appeal by filing a
petition for a writ of certiorari, then the metropolitan government shall file the record
of all proceedings with the court within ten days from the date the metropolitan
government was served with the petition for a writ of certiorari.

SECTION 69.Newly re-numbered subsection 6.54.130(A) is amended by deleting
"6.54.140(B)" at the end the of paragraph and substituting in lieu thereof the
letter "6.54.150(C)".

SECTION 70.Newly re-numbered subsection 6.54.130(C) is amended by deleting the word
"deemed" in the last sentence and substituting in lieu thereof the word
"defined".

SECTION 71.Newly re-numbered subsection 6.54.130(G) is deleted in its entirety and the
remaining sections re-lettered consecutively.

A sign shall be conspicuously displayed in the common area of the premises, and shall
read as follows:

This Sexually Oriented Business is regulated by The Metropolitan Code of Nashville and
Davidson County, Chapter 6.54 which provides that no entertainer or customer shall be
permitted to have any physical contact with any entertainer on the premises during any
performance. All performances shall only occur upon a stage at least eighteen inches above
the immediate floor level at least three feet from the nearest customer.

SECTION 73.Newly re-numbered subsection 6.54.130(I) is amended by deleting the words
"all entertainers" in the first line and by adding the words "in booths,
stalls, or cubicles" after the words "to ensure that the illumination" and
before the words "described in Section" and by deleting the letter
"(r)" and substituting in lieu thereof the roman numeral "(iv)".

SECTION 74. Newly re-numbered subsection 6.54.150(A)(8) through (10) are amended by
deleting the subsections in their entirety and substituting the following new subsections
(8)-(10):

8.Any operator fails to maintain the licensed premises in a clean, sanitary and safe
condition by maintaining or allowing continuing violations of the metropolitan code or the
rules and regulations of the following departments: health, codes, fire, zoning or any
violations of this chapter which result in a threat to the health or safety of the
community.

9. The attempted transfer of a license/permit or any interest in a license/permit shall
automatically and immediately revoke the license.

10.If an application for a license/permit or a renewal of a license/permit was denied
and that administrative denial was appealed and upheld by a court after adjudication on
the merits then that license/permit shall be revoked on the effective date of the court's
judgement.

SECTION 75. Newly re-numbered subsection 6.54.150 is amended by adding a new subsection
(B) as follows and renumbering the remaining subsections consecutively.

The board shall suspend a license or permit for any of the following reasons:

A first time offense, which poses a threat to the health or safety of the community.
For any violation which is a threat to the health and safety of the community and is also
a first time offense, the suspension shall not be longer than seven (7) days.

A violation of this chapter or the metropolitan code which is not a threat to the
health and safety of the community and has occurred more than three times over a period of
two years.

3.No suspension shall be for less than one full twenty-four hour period for any
violation.

SECTION 76. Newly re-numbered subsection 6.54.150(D) is amended by deleting the
subsection in its entirety and substituting the following new subsection (D):

(D) Other violations not listed in 6.54.150(A) of this chapter may be subject to a fine
in an amount not to exceed five hundred dollars ($500.00) for each violation.

SECTION 77. Newly re-numbered subsection 6.54.150(E)(1) is amended by deleting the
words "at least ten" and substituting in lieu thereof the word "five"
and by deleting the word "charges" and substituting in lieu thereof the words
"alleged violation(s)" and by deleting the words "subsection (A)(10)"
and substituting in lieu thereof the words "6.54.150 (A)(9) and (10)" at the end
of that paragraph.

SECTION 78. Newly re-numbered subsection 6.54.150(E)(2) is amended by deleting the
subsection in its entirety and substituting the following new subsection (2):

(2) The board shall hear all the evidence pertaining to the revocation or suspension at
the next regular meeting. The next meeting shall be held no later than fifteen days after
the notice described above is mailed. The licensee/permittee may present evidence bearing
upon the question of suspension/revocation.

SECTION 79. Subsection 6.54.150(E)(3) is deleted in its entirety and the remaining
subsections renumbered consecutively.

SECTION 80. Newly re-numbered subsection 6.54.150(E)(3) is amended deleting the
subsection in its entirety and substituting the following new subsection (3):

(3) If the licensee/permittee fails to appear at the hearing before the board he/she
will have waived the right to present evidence to the board on the citation. This has no
effect, whatsoever, on the licensee's/permittee's right to appeal any revocation to the
chancery court of Davidson County.

SECTION 81. Newly re-numbered subsection 6.54.150(E)(4) is amended by deleting the last
sentence.

SECTION 82. Newly re-numbered subsection 6.54.150(E)(5) is amended by deleting the
subsection in its entirety and substituting the following new subsection (5):

(5) Any adverse administrative decision to suspend or revoke a license/permit that is
appealed to the circuit or chancery courts of Davidson County shall not take effect until
that administrative decision has been upheld by the court after adjudication on the
merits. Adverse decisions of the board which are not appealed shall not take effect for
sixty (60) days from the date of the decision to allow the affected party time to seek
judicial review.

SECTION 83. Newly re-numbered subsection 6.54.150(E) is amended by adding a new
subsection (6) to read as follows:

(6) The revocation/suspension of a license/permit may be appealed to the circuit or
chancery courts of Davidson County by the licensee/permitee. The metropolitan department
of law may initiate proceedings for a declaratory judgment in the circuit or chancery
court for Davidson County. If the permittee/licensee chooses to appeal by filing a
petition for a writ of certiorari, then the metropolitan government shall file the record
of all proceedings with the court within ten days from the date the metropolitan
government was served with the petition for a writ of certiorari.